Rumpel Labs is about to launch a platform for simulating air drop points.
According to an announcement on August 26, Rumpel Labs will launch a new decentralized finance (DeFi) protocol in September that will allow users to trade tokens and airdrop points.
Backed by venture capital firms including Dragonfly and Variant, Rumpel “aims to improve the flow and value discovery of off-chain loyalty points, opening up new opportunities for point owners, merchants, weather hunters and point givers,” said Rumpel.
Rumpel joins the ranks of other newly launched protocols such as Nudge to solve the problems of using user attraction and incentive methods in Web3. Nudge is building a two-sided marketplace where protocols pay incentives to users to redirect onchain assets, liquidity and participation.
Rumpel wants to create a market for tokenized airdrop points. Source: Rumpel
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The existing airdrop model has been plagued by controversy over token underperformance and arbitrary fees. Due to the “low allocation [and] “Unexpected air drop requirements, farmer returns are much lower than what consumers expected in early 2024,” Rampel said.
“We've talked to a lot of users who feel like they're late to the points program, ‘not comfortable exposing too much of their capital to smart contract risks' or ‘don't want to go through all the hoopla' about getting more allocations before the airdrop,” Rampel said.
According to a July X post by crypto researcher Ailo, founder of the Alpha Please pseudonym, 23 of the 31 tokens distributed in major airdrops have lost value since their first day of listing, sometimes significantly. Excluding memecoins, only two airdrops – or around 6% of the total – outperformed Bitcoin (BTC) in a comparable timeframe.
“I think we've hit an absolute peak,” Jonathan Joseph, co-founder of SmartFunds, a real-world asset platform, told Cointelegraph.
“We need constructive models to enter new protocols in a way that adds value to all stakeholders,” Joseph said.
Rumpel seeks to address the myriad limitations of airdrops by “allowing users to aggregate each earned point into a Rumpel Point Token” with a special wallet. This “allows point farmers to sell points, investors to buy points and point issuers to continue to generate points around their intrinsic value,” Rumpel said.
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